SoundCloud just secured it’s biggest funding ever, CEO assures they’re here to stay

After contesting rumours that SoundCloud were on the brink of shutdown CEO Alex Ljung has announced they have just wrapped up their largest round of funding ever.

Recent months have seen SoundCloud face rumours of its impending doom and that the investors want to oust founder Alex Ljung from his position as CEO. They strongly denied claims of their severe lack of funding that would precede their demise, and now it seems they were right as they’ve secured the largest investment since launching 10 years ago.

The funding that SoundCloud have received will allow them to continue under their own ownership and has come from two investors, The Raine Group and Temasek. It’s not clear if these are the two investors who were rumoured to be taking a majority stake in the company last month.

Rumours concerning a CEO replacement seem to have been accurate as former Vimeo CEO Kerry Trainor (pictured above) will take Alexander Ljung’s place as CEO of the company. Trainor will also be bringing in Mike Weissman as his COO at SoundCloud. Ljung will remain as Chairman at the company after helping to found the company and run it as CEO for the past 10 years.

Ljung wrote a full statement that you can read below:

Hey everyone,

Recently you heard me say SoundCloud isn’t going away. And today I’m here to tell you the exact same thing once again. In all caps.

I’m happy to announce that together with investors The Raine Group and Temasek we’ve just wrapped up the largest financing round in the history of SoundCloud. This financing means SoundCloud remains strong & independent. As I said, SoundCloud is here to stay.

Over the last few weeks, I’ve been moved by the outpouring of commentary around SoundCloud’s unique & crucial role in driving what global culture is today (and what it will become tomorrow). You’ve told me how, without SoundCloud, there would be a giant gaping void in today’s world of music. We can’t have that, and I’m happy to once again say that won’t be happening.

I’m excited to also announce that this new partnership also brings talent to our SoundCloud family. From prior Vimeo-fame (a platform we love!) comes Kerry Trainor and Mike Weissman, two awesome leaders who will be joining SoundCloud as CEO and COO, respectively.

Wait, CEO? Am I leaving? No, absolutely not. After a decade of balancing the roles of Founder, CEO and Chairman I’m excited to hand the CEO reins over to Kerry to allow me to fully focus on the role of the Chairman and the long-term. This, I know, sets us up as an even greater team  for the decade(s) to come.

10 years ago SoundCloud was just an idea Eric and I bounced around. Today it’s a platform essential to the shaping of songs, artists, genres and global culture. I can’t fathom how we’ve been so lucky as to create that. But what’s even better is this: we’re all just getting started. The first 10 years are done, and now we’re onto decade II.

SoundCloud, just like music, will continue to evolve, but importantly, both will always be a key part of life.

Alexander Ljung
Founder & Chairman, SoundCloud

Jacca-RouteNote
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Writing about music, listening to music, and occasionally playing music.

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